The shiny metal slipped slightly after touching a high of $1254.56 an ounce which is very close to all-time high recorded inn June of $1264.07.

Meanwhile, gold is fighting to remain above strong resistance at $1250 where it is currently trading at $1249.16. Recently, gold has benefited from the slowdown in economic growth in the United States and emerging economies as well as fiscal woes in Europe.

Yesterday, President Barack Obama introduced $50 billion infrastructure plan to create new jobs but said the plan will not have an impact immediately.

In the euro zone, an industry group said ten German lenders may need as much as 105 billion euros to meet regulations, while Wall Street reported that banks stress tests understated some of bank's holding to combat the rise in sovereign debt.

On the other hand, the metal may receive another boost on expected higher physical demand from India, the largest buyer of the metal, amid the festival season that started in August and ends in November.

The previous day, gold added $1.55 to close at $1249.75 an ounce. Gold Price was set in London on Monday at $1249.00 per ounce declining from $1249.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, slipped 0.47 metric tons from 1,294.44 on September 6.

In the currency market, the dollar index, which tracks the dollar movements against a basket of major currencies, rebounded for the second day today after dropping for four consecutive sessions where it is currently trading 82.44 compared with the day's opening at 82.05.

Oil was down to $73.00 a barrel from yesterday's closing of $73.97 impacted by the dollar's rise and decline in Asian shares.

Among other precious metals, platinum plummeted to $1554.70 from the opening price of $1561.20., palladium edged down to $523.90 from $524.70, and silver retreated to $19.81 from $19.84, as of 08:15 GMT.

Ecpulse

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